Noteworthy Price Action: International Business Machines Corp. Gap Down Today Means Higher Risks Forward

Noteworthy Price Action: International Business Machines Corp. Gap Down Today Means Higher Risks Forward

The stock of International Business Machines Corp. (NYSE:IBM) gapped down by $3.34 today and has $140.17 target or 7.00% below today’s $150.72 share price. The 8 months technical chart setup indicates high risk for the $144.36B company. The gap down was reported on Oct, 18 by Barchart.com. If the $140.17 price target is reached, the company will be worth $10.11 billion less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 2.62% or $4.05 on October 18, hitting $150.72. About 11.70 million shares traded hands or 257.80% up from the average. International Business Machines Corp. (NYSE:IBM) has risen 8.26% since March 15, 2016 and is uptrending. It has outperformed by 2.78% the S&P500.

International Business Machines Corp. (NYSE:IBM) Ratings Coverage

Out of 21 analysts covering International Business Machines (NYSE:IBM), 6 rate it a “Buy”, 3 “Sell”, while 12 “Hold”. This means 29% are positive. International Business Machines has been the topic of 55 analyst reports since July 21, 2015 according to StockzIntelligence Inc. As per Thursday, March 31, the company rating was maintained by Morgan Stanley. The stock of International Business Machines Corp. (NYSE:IBM) has “Neutral” rating given on Tuesday, July 19 by UBS. As per Monday, January 18, the company rating was maintained by RBC Capital Markets. RBC Capital Markets maintained International Business Machines Corp. (NYSE:IBM) rating on Friday, January 15. RBC Capital Markets has “Sector Perform” rating and $145.0 price target. On Wednesday, October 28 the stock rating was maintained by RBC Capital Markets with “Sector Perform”. The rating was maintained by JP Morgan on Friday, October 2 with “Neutral”. The stock has “Hold” rating given by Deutsche Bank on Tuesday, July 19. Bernstein maintained International Business Machines Corp. (NYSE:IBM) on Tuesday, July 19 with “Market Perform” rating. JMP Securities initiated it with “Market Perform” rating and $167 target price in Friday, November 20 report. The rating was maintained by Barclays Capital with “Underweight” on Tuesday, July 19.

According to Zacks Investment Research, “IBM is an information technology (IT) company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The Global Technology Services segment provides IT infrastructure services and business process services. The Global Business Services segment offers professional services and application management services. The Software segment consists primarily of middleware and operating systems software. The Systems and Technology segment provides computing power and storage solutions; and semiconductor technology products and packaging solutions. The Global Financing segment invests in financing assets, leverages with debt and manages the associated risks. IBM is headquartered in Armonk, New York.”

Insitutional Activity: The institutional sentiment decreased to 0.81 in 2016 Q2. Its down 0.04, from 0.85 in 2016Q1. The ratio is negative, as 70 funds sold all International Business Machines Corp. shares owned while 663 reduced positions. 85 funds bought stakes while 507 increased positions. They now own 540.67 million shares or 8.01% less from 587.72 million shares in 2016Q1.
Yhb Advsrs has invested 0.22% of its portfolio in International Business Machines Corp. (NYSE:IBM). Modera Wealth Mgmt Ltd Liability accumulated 0.44% or 8,320 shares. Brown Brothers Harriman, a New York-based fund reported 142,457 shares. Flippin Bruce And Porter has 59,595 shares for 2.68% of their US portfolio. Baldwin Mngmt Limited Com last reported 2,334 shares in the company. Moreover, Marble Harbor Counsel Limited Liability has 0.27% invested in International Business Machines Corp. (NYSE:IBM) for 7,257 shares. Hartline Investment Corporation has 0.34% invested in the company for 6,221 shares. Glenmede Trust Co Na has 422,704 shares for 0.39% of their US portfolio. Partnervest Advisory Svcs Ltd last reported 3.4% of its portfolio in the stock. Azimuth Mgmt has 117,830 shares for 1.6% of their US portfolio. Mackenzie holds 343,198 shares or 0.29% of its portfolio. The Ohio-based Macnealy Hoover Invest Management has invested 1.55% in International Business Machines Corp. (NYSE:IBM). Catawba Management Va owns 31,546 shares or 1.16% of their US portfolio. Piershale Financial Group holds 0.18% or 1,600 shares in its portfolio. First National Trust accumulated 0.65% or 28,075 shares.

Insider Transactions: Since April 20, 2016, the stock had 0 buys, and 9 insider sales for $6.97 million net activity. PICCIANO ROBERT J also sold $452,645 worth of International Business Machines Corp. (NYSE:IBM) shares. JETTER MARTIN also sold $607,865 worth of International Business Machines Corp. (NYSE:IBM) shares. 2,984 shares were sold by Clementi Erich, worth $474,458. LeBlanc Robert J. had sold 15,708 shares worth $2.55 million. 629 shares were sold by van Kralingen Bridget A, worth $100,261 on Thursday, August 25. Shares for $438,942 were sold by Gherson Diane J. The insider Di Leo Allen Bruno V sold 3,900 shares worth $572,644.

More notable recent International Business Machines Corp. (NYSE:IBM) news were published by: Fool.com which released: “International Business Machines Corp. Earnings: The Strategic Makeover Is 40 …” on October 18, 2016, also Nasdaq.com with their article: “Earnings Reaction History: International Business Machines Corp., 60.0% Follow …” published on October 17, 2016, Benzinga.com published: “Where Was The Bright Spot In IBM’s Earnings?” on October 18, 2016. More interesting news about International Business Machines Corp. (NYSE:IBM) were released by: Benzinga.com and their article: “Barclays Says IBM’s Q3 ‘Not Much To Get Excited About'” published on October 18, 2016 as well as Seekingalpha.com‘s news article titled: “International Business Machines Corporation: We Were About To Leave; Then …” with publication date: October 11, 2016.

IBM Company Profile

International Business Machines Corporation (IBM), incorporated on June 16, 1911, is a technology company. The Firm operates through five divisions: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems Hardware and Global Financing.

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